U.S. grain prices are historically high as we enter harvest season, which provides a very unique marketing opportunity for Iowa producers. However, it can be difficult to chase a market rally and worry about harvest at the same time. Micheal Weidner, director of grain origination and producer strategy at Landus Cooperative, said these prices are worth defending with some marketing plans.
Weidner said these prices are especially valuable for producers who might be slightly behind on sales.
However, excessively high market prices can drive down global demand, especially since countries like Brazil and Argentina are selling grain at a discount to the U.S. Weidner said this means there is still a good amount of risk that farmers need to be aware of.
Weidner said this rally is supported by a somewhat scary amount of hedge fund length, but it seems like these conditions will persist for the time being.
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